Bias: While 1.2145-52 supports I look for a recovery within the range
The 1.2285-1.2312 resistance gave way slightly but the reversal lower came and I feel that we should now see a recovery within the range. This should see the 1.2145-52 area support and provoke a break above the 1.2191 corrective peak to drive price higher through 1.2214 and 1.2240-70 to re-attack the 1.2313-37 area. Watch this carefully for bearish trade set ups. If it holds we should revert back lower into range again... Only a break above 1.2340 would see a move through 1.2553 and to 1.2394 at least. Also note resistance at 1.2429...
Given the larger picture remains bearish we cannot ignore any break below 1.2145 and the 1.2110 low but take care in the 1.2066-96 area which still represents a key support that could generate a recycling of the larger correction. Below 1.2060 would imply we are on our way lower to the 1.1933-67 area...
Medium Term Outlook:
2nd June: While not ruling out a retest towards 1.2670 which can still occur while 1.2019 & 1.2066 supports, there is a growing risk that we may see the larger downtrend resume. We're going to have to watch the short term movements first in order to see how this all develops.
Below 1.2019 there is 1.1960-70 and 1.1840 ahead of the big 1.1640 swing low.
For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are available on the Daily Forecast page of my web site in the Trader Package review. (+70 pips)